Nicole Koelsch, CPA, Discusses Oil & Gas Industry in the News
ABBB Oil and Gas Industry Leader and Principal Nicole Koelsch, CPA was featured in five local media outlets recently, talking about the effects of low oil prices on the oil and gas industry.
The oil industry is experiencing record lows in demand, which is forcing producers to lay off employees and shut down wells. Statewide, it’s estimated that four out of every five Kansas counties are involved in oil and gas production, and the economy as a whole will experience setbacks as a result of recent record-low prices on crude oil.
Nicole was interviewed in:
- This video segment for KWCH Channel 12 on April 20,
- This article for the KAKE news station in Wichita on April 21,
- The Hays Post on April 23,
- The Great Bend Tribune on April 25,
- News from the Oil Patch (Hays Post) on April 28, 2020.
Talking with KAKE, Nicole commented that “Since we have such an excess of supplies, our storage facilities are starting to fill up. That’s how we got into this territory with the negative oil prices … Ultimately, the impact it can have, let’s think of our local state governments, our cities, our counties, our schools. They rely heavily on our valuations in the oil and gas industry.”
Further commenting on the supply and demand imbalance, she remarked to the Great Bend Tribune that “…the oil price crisis actually began before the height of the virus’ spread. Around the beginning of March, Russia and Saudi Arabia flooded the oil market with excess supply. The result [was that] our storage facilities are reaching their capacities a lot sooner than anyone had really anticipated.”
During her interview with KWCH, she said that “I definitely think you could possibly see some bankruptcies. I think you could also see a lot of consolidations, a lot of the larger companies coming in and buying out some of the smaller mom and pops.” And in speaking with the Hays Post, she commented on long-term effects on the industry as “workers leave[ing] oilfields for other jobs and not come[ing] back.”
In a recent blog post for the ABBB website, Nicole wrote that oil and gas companies are now experiencing “the importance of strategic contingency planning that all business owners should engage in, but which few actually practice.”